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STRATEGY
Major Topics
Chicago 110,000 25
For Chicago
Total Costs=110,000 + 25(2,000)=160,000
Akron
180,000 Chicago
B
160,000
Total Annual Costs
140,000
120,000
100,000 A
80,000
60,000
40,000
20,000
X = 1,000
At point B, TCBG=TCC
Z = 2,500
Akron
180,000 Chicago
B
160,000
Total Annual Costs
140,000
120,000
A
100,000
80,000
60,000
40,000
20,000
For Chicago
Total Costs=110,000 + 25(Q)=160,000
Total Revenue=120Q
120Q=110,000 + 25(Q)
Q=1,158
Center of Gravity Method
New York - 1,000
Detroit -2,000
Pittsburgh - 1,000
Atlanta - 2,000
Center of Gravity Method
New York - 1,000
Detroit -2,000
Pittsburgh - 1,000
Atlanta - 2,000
Center of Gravity Method
50
Pittsburgh - 1,000
40
30
20
Atlanta - 2,000
10
10 20 30 40 50 60 70 80 90 100
Center of Gravity Method
80 New York - 1,000
70
Detroit -2,000
60
50
Pittsburgh - 1,000
40
30
20
Atlanta - 2,000
10
10 20 30 40 50 60 70 80 90 100
Center of Gravity Method
dxcg = 45.5
dycg = 46.8
Center of Gravity Method
80 New York - 1,000
70
Detroit -2,000
60
50 CG=45.5,46.8
Pittsburgh - 1,000
40
30
20
Atlanta - 2,000
10
10 20 30 40 50 60 70 80 90 100
Factor Rating Method
Economic Development
Manpower Skills
Political Maturity
Infrastructures
Communications Ability-English
Infrastructures .15
Economic Development 90 80
Manpower Skills 90 95
Political Maturity 85 90
Infrastructures 90 90
Communications Ability-English 85 95
Infrastructures .15 90
Infrastructures .15 90